This article is from the Australian Property Journal archive
ASX-listed alternative asset manager MA Financial has boosted its portfolio of marinas, buying the Batemans Bay and Port Macquarie marinas for $20 million from founder and managing director of Marprop Real Estate Investors, James Marshall.
The new purchases will complement the firm’s portfolio of 10 d’Albora marinas in the MA Marina Fund, established by MA Financial in April this year with the $225 million acquisition. The close-ended fund offers exposure to Australia’s largest marina network across the eastern seaboard and includes the iconic Rushcutters Bay, The Spit and Cabarita Point in Sydney Harbour, and two marinas adjacent to the Melbourne CBD.
Joint CEO of MA Financial, Julian Biggins, said the new acquisition of the two additional marinas is aligned with the firm’s strategy, driven by increasing investor demand for alternative real estate assets.
“We have received significant interest in the MA Marina Fund from domestic and international investors keen for exposure to defensive, cash-generative assets largely uncorrelated to other asset classes. These two new facilities will help enhance the Fund’s offering,” he said.
Marshall said the sale underpins the appeal of well-located marinas in Australia.
“Port Macquarie and Batemans Bay are among the fastest growing areas in New South Wales which contribute to their appeal and value.”
MA Financial is buoyant about the fundamentals and outlook for Australia’s marina market. Boat registration numbers on the east coast are rising and outpacing the supply of new marina berths, which are limited by strict regulations and the lack of available and suitably located development land and seabed, it said.
“We expect the supply-demand dynamic will continue to drive strong revenue and earnings for marina operators,” Biggins said.
East Coast Marina in Manly Harbour, east of Brisbane, was put to the market in August. It is the only private-owned marina in the 1,800-berth Manly Harbour.
MA Financial Group expects continued growth in alternatives as investor interests shift beyond traditional real estate sectors.
Biggins said there is substantial growth in institutional allocation to alternative investments, which is estimated to almost double over five years and grow to $23 trillion by 2026.
